Exactly how much passengers will benefit from
Qantas Airways
and Emirates’ new partnership should become clearer in coming weeks when the airlines release details of the kinds of fares they will be offering as part of a joint sales and pricing strategy.

While the decision was widely expected and already factored in to Qantas’s share price, it will give investors some certainty about efforts to stem losses at the Australian airline’s international operations. Qantas chief
Alan Joyce
is not out of the woods yet though.

The decision will not be final until March and the ACCC has the right to change its mind anytime. Qantas’s disenfranchised workforce remains an issue with unions strongly opposed to the tie-up. The commission has agreed to preside over a conference between Qantas and the Transport Workers Union before making a final ruling.

There is also a question mark over the impact on services between Australia and New Zealand. Both airlines are not yet allowed to coordinate on those services, which Qantas says is because New Zealand law does not provide for interim authorisation. However, the ACCC is still worried alliance may have an adverse impact on capacity and airfares between Australia and New Zealand.

What today’s decision means is that both airlines can start work on thinks like sales, pricing, marketing, integrating their systems and coordinating flight schedules. ACCC chairman
Rod Sims
says he is taking into account the long lead time the airlines need to market and sell tickets.

Any ticket sales under the partnership will come with a large asterisk until there is a final ACCC ruling, however. The airlines have had to promise their will compensate passengers if the decision is reversed.

The decision is crucial for Joyce, who has to somehow reverse the losses at Qantas international which hit $450 million in financial 2012. Macquarie sees potential earnings uplift of $70 million to $240 million and expects the mainline international business to now make a profit by financial year 2015.

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Joyce is facing a tough year with competitive pressure on Qantas’s domestic operations, rumblings by former management about a potential takeover bid although nothing has materialised and industrial relations pressures.

Domestic rival Virgin Australia is also waiting for an important ACCC ruling. Sims has indicated there may be issues with Virgin’s plan to acquire a majority stake low-cost carrier Tiger Airways Australia, although the acquisition of regional operator Skywest should be less troublesome.